Amendments to Delegated Regulation (EU) 2017/587
Article 2
Delegated Regulation (EU) 2017/587 is amended as follows: (1) Article 2 is amended as follows: (a) point (a) is replaced by the following: ‘(a) the transaction is executed by reference to a price that is calculated over multiple time instances based on a given benchmark, including transactions executed by reference to a volume-weighted average price or a time-weighted average price, whereby the time instances for price calculation cover a sufficiently long period to ensure that there is no relation to the current market price;’; (b) point (j) is replaced by the following: ‘(j) the transaction is not a transaction for the purposes of Article 26 of Regulation (EU) No 600/2014, as determined on the basis of the criteria laid down in Article 2(5) of Commission Delegated Regulation (EU) 2017/590 ( *1 ) , or is a type of transaction listed in Article 13 of this Regulation. ( *1 ) Commission Delegated Regulation (EU) 2017/590 of 28 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the reporting of transactions to competent authorities ( OJ L 87, 31.3.2017, p. 449 , ELI: http://data.europa.eu/eli/reg_del/2017/590/oj ).’;" (2) in Article 3(1), the following subparagraph is added: ‘The details of pre-trade data to be made public shall be those specified in Table 1b of Annex I.’; (3) Article 4 is amended as follows: (a) paragraph 4 is replaced by the following: ‘4. Until the most relevant market in terms of liquidity for a specific financial instrument is determined in accordance with the procedure specified in paragraphs 1 to 3, the most relevant market in terms of liquidity shall be either of the following: (a) the regulated market where that financial instrument is first admitted to trading or first traded; (b) where the financial instrument is not made available for trading on a regulated market in the Union, the multilateral trading facility where that financial instrument is first admitted to trading or first traded.’ ; (b) paragraph 5 is replaced by the following: ‘5. Paragraphs 2 and 3 shall not apply to shares, depositary receipts, ETFs, certificates and other similar financial instruments which were first admitted to trading or first traded on a trading venue between 1 and 31 December of the preceding calendar year.’ ; (c) the following paragraph 6 is added: ‘6. The determination of the most relevant market in terms of liquidity set out in paragraph 4 shall apply from the day on which the financial instrument was first admitted to trading or first traded.’ ; (4) in Article 6, the first subparagraph is amended as follows: (a) point (a) is replaced by the following: ‘(a) the transaction is executed in reference to a price that is calculated over multiple time instances based on a given benchmark, including transactions executed by reference to a volume-weighted average price or a time-weighted average price, whereby the time instances for price calculation cover a sufficiently long period to ensure that there is no relation to the current market price;’; (b) point (j) is replaced by the following: ‘(j) any other transaction equivalent to one of those referred to in points (a) to (c) in that it is contingent on technical characteristics which are unrelated to the current market valuation of the financial instrument traded;’; (c) point (k) is replaced by the following: ‘(k) the transaction is not a transaction for the purposes of Article 26 of Regulation (EU) No 600/2014, as determined on the basis of the criteria laid down in Article 2(5) of Delegated Regulation (EU) 2017/590, or the transaction is a type of transaction listed in Article 13 of this Regulation.’; (5) Article 7 is amended as follows: (a) in paragraph 4, the second subparagraph is replaced by the following: ‘Paragraphs 3 and 4 shall not apply to shares, depositary receipts, certificates and other similar financial instruments that were first admitted to trading or first traded on a trading venue between 1 and 31 December of the preceding calendar year.’; (b) paragraph 6 is replaced by the following: ‘6. Before a share, depositary receipt, certificate, or other similar financial instrument is traded for the first time on a trading venue in the Union, the competent authority shall estimate the average daily turnover for that financial instrument taking into account: (a) any previous trading history of that financial instrument; (b) other previous or similar financial instruments of the same issuer; (c) other financial instruments that are considered to have similar characteristics. The competent authority shall publish that estimated average daily turnover.’ ; (6) Article 8 is amended as follows: (a) in paragraph 1, point (b) is replaced by the following: ‘(b) for orders other than reserve orders, cannot interact with other trading interests prior to disclosure to the order book operated by the trading venue;’; (b) paragraph 3 is replaced by the following: ‘3. A reserve order as referred to in paragraph 2, point (a), shall be considered a limit order consisting of a disclosed order relating to a part of the amount and a non-disclosed order relating to the remaining part of the amount where the order on the non-disclosed amount can be executed only after the order on the disclosed amount is executed.’ ; (7) in Article 10, the following subparagraph is inserted after the first subparagraph: ‘Where there are no quotes of equivalent sizes for the same financial instrument on the most relevant market in terms of liquidity as determined in accordance with Article 4 for that financial instrument, the prices published by a systematic internaliser shall be deemed to reflect prevailing market conditions where they are close in price to quotes of equivalent sizes for the same financial instrument on trading venues other than the most relevant market in terms of liquidity as determined in accordance with Article 4.’; (8) in Article 11, paragraph 1 is replaced by the following: ‘1. The standard market size for shares, depositary receipts, ETFs, certificates, and other similar financial instruments for which there is a liquid market shall be determined on the basis of the average value of transactions for each financial instrument calculated in accordance with paragraphs 2 and 3 and in accordance with Table 3 and Table 3a of Annex II.’ ; (9) the following Articles 11a and 11b are inserted: ‘Article 11a Quote size below which the pre-trade transparency requirements under Articles 14, 15, 16 and 17 of Regulation (EU) No 600/2014 apply (Article 14(2) of Regulation (EU) No 600/2014) The obligation to make public firm quotes in respect of shares, depositary receipts, ETFs, certificates, and other similar financial instruments shall apply to systematic internalisers when they deal in sizes up to twice the standard market size as determined in accordance with Article 11. Article 11b Minimum quote size (Article 14(3) of Regulation (EU) No 600/2014) The minimum quote size for a particular share, depositary receipt, ETF, certificate, or other similar financial instrument traded on trading venue shall be equal to the standard market size as determined in accordance with Article 11.’ ; (10) Article 12 is amended as follows: (a) paragraph 1 is replaced by the following: ‘1. Market operators and investment firms operating a trading venue, and investment firms trading outside a trading venue, shall make public the details of each transaction by applying reference Tables 2, 3 and 4 of Annex I. The field names in Table 3 of Annex I shall be made public using the same naming conventions as specified in the field identifier of that Table.’ ; (b) paragraph 2 is replaced by the following: ‘2. Where a previously published trade report is cancelled, market operators and investment firms operating a trading venue, and investment firms trading outside of a trading venue, shall make public a new trade report which contains all the details of the original trade report and the cancellation flag specified in Table 4 of Annex I.’ ; (c) paragraphs 5 and 6 are deleted; (11) in Article 13, the following point (b) is added: ‘(b) give-up transactions or give-in transactions, which are any of the following transactions: (i) a transaction where an investment firm passes a client trade to, or receives a client trade from, another investment firm for post-trade processing; (ii) a transaction where an investment firm executing a trade passes it to, or receives it from, another investment firm for the purpose of hedging the position that it has committed to enter into with a client.’; (12) in Article 15, paragraph 4 is replaced by the following: ‘4. Where a transaction between two investment firms is executed outside the rules of a trading venue, the competent authority for the purpose of determining the applicable deferral regime shall be the competent authority of the investment firm responsible for making the trade public through an APA in accordance with Article 21a(3) of Regulation (EU) No 600/2014.’ ; (13) Article 17 is amended as follows: (a) paragraph 1 is amended as follows: (i) the introductory wording is replaced by the following: ‘By 1 March of each year after the date of application of this Regulation, competent authorities and ESMA shall, in relation to each financial instrument for which they are the competent authority, collect the data, calculate and ensure the publication of the following:’; (ii) point (c) is replaced by the following: ‘(c) the average value of transactions to determine the standard market size set out in Article 11(2) and the thresholds set out in Articles 11a and 11b.’; (b) paragraph 2 is replaced by the following: ‘2. Competent authorities, market operators, and investment firms, including investment firms operating a trading venue, shall use the information published in accordance with paragraph 1 for the purposes of Article 4(1), points (a) and (c), and Article 14(2), (3) and (4) of Regulation (EU) No 600/2014, for the period between the first Monday of April of the year in which the information is published and the day before the first Monday of April of the subsequent year.’ ; (c) paragraph 7 is replaced by the following: ‘7. Where the trade size determined for the purposes of Article 7(1) and (2), Article 8(2), point (a), Article 11(1), Articles 11a and 11b, and Article 15(1) is expressed in monetary value and the financial instrument is not denominated in euro, the trade size shall be converted to the currency in which the financial instrument is denominated by applying the European Central Bank euro foreign exchange reference rate as of 31 December of the preceding year.’ ; (14) Article 19 is replaced by the following: ‘Article 19 Sunset clause Article 17(6) and Annex IV shall no longer apply from 1 January 2026 and Article 17(5) and Annex III shall no longer apply from 1 January 2027.’ ; (15) Annex I is amended in accordance with Annex IV to this Regulation; (16) Annex II is amended in accordance with Annex V to this Regulation;